The pandemic was first and foremost considered as a threat for physical stores. A year ago, we actually published a report on the impact of the first lockdown on shopping behaviours. But this COVID-19 crisis revealed above all the need for brands to diversify, notably by varying and interconnecting communication channels. While e-commerce was already present in most segments, it is now expanding post-crisis into areas such as local commerce, with the emergence of dark stores and the boom of click & collect. Let's take a deep dive.
Brick and mortar makes a strong comeback
Despite some issues caused by the crisis, in-store commerce should make a strong comeback. Shoppers are not giving up on in-store shopping. According to a retail white paper signed by YouGov, reported by CB News, which we read, most French people prefer to go to a store to make their purchases (60% of respondents). We also noticed that "43% of French people prefer to buy clothes in stores, rather than through another channel".
Good news for retailers: most shoppers (51% worldwide) value seeing and touching a product, especially clothing, shoes and other fashion items. Going straight to the checkout after trying on a piece of clothing without having to pay a delivery fee is also part of the reason why shoppers still prefer brick and mortar stores. Many also favour spending time outdoors and interacting with others while shopping.
The real trend that is emerging is the combination of physical and digital. Again according to YouGov, the majority of shoppers are shopping both online and in-store. Specifically, nearly three-quarters (74%) of those surveyed shopped via both channels in Q1 2021. The phenomenon of showrooming, which consists in finding products and then finding them at the best price online, is tending to give way to webrooming... the opposite phenomenon! The latter is favoured by the large amount of information that can be found on the Internet, and the desire for consumers to see, touch and try their favourite product in a brick and mortar store. Another good news for retailers!
Physical and online commerce: towards merging sales channels?
The digital boom during the crisis and especially the lockdowns have highlighted the need to opt for an omnichannel strategy, taking into account both physical and digital. New trends and growth levers have emerged from the crisis and the boundaries between physical and digital are disappearing. From now on, the shopper's purchase decision will be linked to his location, his habits, the product he is looking for or the objective of his purchase, for example. But the retailer must have all this information at hand.
"Better customer knowledge offered by payment data is now key", explains Benoit Mouret, our Head of Product.
"By giving brands the ability to provide shoppers with the right personalized offer on the right channel - the one where they are most likely to buy - we can provide stores with new use cases, thanks to the details of transactions and customer data collected both online and in person."
The crisis has been an opportunity to see the development of click & collect, which consists of ordering on an e-commerce site and then picking up the order in a brick and mortar store or retailer's outlet. If this option was already present in the European retail landscape, the crisis has allowed it to become widespread. Click & collect is a very accessible way to develop an omnichannel strategy, which gives the customer the choice of paying in-store or online, thus reducing the number of shoppers in crisis times. As a result, in 2020, brands that already offered click & collect almost doubled their growth, from an average of 27% to 52% (Criteo).
In addition to the craze for this shopping channel, the emergence of "dark stores" is an expression of the adaptation of post-COVID retailers. These warehouses, which take the form of supermarkets designed for e-commerce to facilitate local delivery, are an opportunity for retailers and e-merchants to offer a better consumer experience. They allow them to face the boom of online orders while taking advantage of dedicated logistic centers to facilitate and accelerate accessibility.
As you can see, brick and mortar commerce is still pushing all its players towards innovation: brick and mortar retail still has a long way to go.